The Toronto stock market was down more than 600 points late in the morning, its slide led by big losses in energy and financial stocks - the two most powerful sectors - erasing almost half of its 14 per cent gain last week.
The S&P/TSX composite index fell 640.7 points to 8,629.9.
The TSX Venture Exchange declined 19.46 points to 746.89.
Political turmoil in Ottawa and the prospects that the federal Conservative minority government could be ousted likely had some impact on the selloff, but analysts noted investors have plenty of other worries right now - including a disappointing start to the U.S. holiday season that has deepened worries about the American economy.
In Ottawa, sources said the Liberals and NDP have drafted a plan for Canada's first coalition federal government since the First World War, aiming to govern jointly until the middle of 2011. But they would need support from the Bloc Quebecois. Meanwhile, the Conservative minority government on Sunday moved the budget date ahead to Jan. 27.
The political uncertainty and another tumble in oil prices sent the Canadian dollar down 0.12 cent to 80.72 cents US.
Canadian economic data painted a bright picture of stronger economic growth.
Statistics Canada said the economy expanded 0.1 per cent in September, which most economists believe was the last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major loser in early TSX action, down more than 10 per cent as the January crude oil contract fell $3.87 to US$50.56 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX: ECA.TO) fell $6.37 to $53.63 while Petro-Canada (TSX: PCA.TO) surrendered $4.42 to $29.32.
Roger Biduk writes;
Financial stocks were down seven per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.30 to $39.91 while TD lost $2.71 to $43.29
The gold index pulled back 10 per cent as bullion fell $44.20 to US$772 an ounce on the Nymex. Barrick Gold Corp. (TSX: ABX.TO) was down $3.55 to $34.17.
Base metals gave back almost 11 per cent with Teck Cominco Corp. (TSX: TCK-B.TO) off 78 cents to $5.22.
Overseas markets were also down sharply on deepening worries about economic conditions.
London's FTSE 100 index fell five per cent, while Frankfurt's DAX retreated 6.1 per cent and the Paris CAC 40 slid 5.1 per cent as specialist financial services company London Scottish Bank announced that it has gone into administration.
Asian markets closed lower with the Nikkei 225 stock average in Tokyo down 115.05 points, or 1.4 per cent, at 8,397.22 after advancing 7.6 per cent last week.
Markets in South Korea, Australia and Singapore also fell, while India's benchmark Sensex index reversed early gains and closed with a loss of 2.8 per cent at 8,839.87 in the wake of the Mumbai terrorist attacks.
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Monday, December 1, 2008
Saturday, November 29, 2008
Six in a Row for Bay Street led by Financials
Roger Biduk writes:
The Toronto stock market soared more than 500 points Friday, led by a big jump in bank stocks ahead of a wave of earnings reports next week.
The S&P/TSX composite index ran ahead for a sixth straight session, up 516.85 points or 5.9 per cent to 9,270.62.
The main index rose 1,116 points or almost 14 per cent this week as investors also snapped up beaten-down commodity stocks.
The TSX Venture Exchange rose 18.39 points to 766.62.
The CDN$ was down 0.39 cent to 80.84 cents U.S. as Prime Minister Stephen Harper has guaranteed the survival of his minority Conservative government for at least another week by pushing back a confidence vote.
Opposition leaders were expected to spend the weekend negotiating the details of a parallel government that could wrest power from the Tories less than two months after the Oct. 14 general election.
The TSX financial sector rose 12 per cent as investors feel better about earnings coming out next week from most of the big banks. Four of the big six prepared investors with pre-earnings writedown warnings.
Royal Bank (TSX:RY), which reports Thursday, gained $4.30 or 11 per cent to $43.18 while Scotiabank (TSX:BNS), releasing results Tuesday, advanced $4.25 or 13 per cent to $37.
Roger Biduk writes:
The TSX energy sector was up 2.55 per cent as the front-month crude oil price slipped a penny to US$54.43 on the New York Mercantile Exchange with OPEC officials sending mixed messages about a production cut before a regularly scheduled meeting in December.
Investors will be watching whether the Organization of Petroleum Exporting Countries reduces output quotas at an informal meeting Saturday in Cairo, Egypt.
EnCana Corp. (TSX:ECA) improved $3.50 to $60 while Petro-Canada (TSX:PCA) ran ahead $3.73 or 12.4 per cent to $33.73.
The telecom sector was up 4.35 per cent after two days of declines in the wake of the announcement by BCE Inc. that the takeover of the telecom giant by a group led by the Ontario Teachers' Pension Plan is in serious jeopardy. BCE declined 28 cents to $24.95 - down sharply from Tuesday's close of $38.35 - while Telus Corp. (TSX:T) gained $2.53 to $39.22.
The base metals sector rose 0.8 per cent, capping a week of strong gains. Sherritt International bounded 57 cents or 20 per cent to $3.44.
Cameco Corp. (TSX:CCO) gained 50 cents to $22.15 after it said it is suspending production of uranium hexafluoride at its complex in Port Hope, Ont., as a result of "unreliable and expensive" deliveries of hydrofluoric acid.
On the TSX, advances beat declines 857 to 417 with 181 unchanged.
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The Toronto stock market soared more than 500 points Friday, led by a big jump in bank stocks ahead of a wave of earnings reports next week.
The S&P/TSX composite index ran ahead for a sixth straight session, up 516.85 points or 5.9 per cent to 9,270.62.
The main index rose 1,116 points or almost 14 per cent this week as investors also snapped up beaten-down commodity stocks.
The TSX Venture Exchange rose 18.39 points to 766.62.
The CDN$ was down 0.39 cent to 80.84 cents U.S. as Prime Minister Stephen Harper has guaranteed the survival of his minority Conservative government for at least another week by pushing back a confidence vote.
Opposition leaders were expected to spend the weekend negotiating the details of a parallel government that could wrest power from the Tories less than two months after the Oct. 14 general election.
The TSX financial sector rose 12 per cent as investors feel better about earnings coming out next week from most of the big banks. Four of the big six prepared investors with pre-earnings writedown warnings.
Royal Bank (TSX:RY), which reports Thursday, gained $4.30 or 11 per cent to $43.18 while Scotiabank (TSX:BNS), releasing results Tuesday, advanced $4.25 or 13 per cent to $37.
Roger Biduk writes:
The TSX energy sector was up 2.55 per cent as the front-month crude oil price slipped a penny to US$54.43 on the New York Mercantile Exchange with OPEC officials sending mixed messages about a production cut before a regularly scheduled meeting in December.
Investors will be watching whether the Organization of Petroleum Exporting Countries reduces output quotas at an informal meeting Saturday in Cairo, Egypt.
EnCana Corp. (TSX:ECA) improved $3.50 to $60 while Petro-Canada (TSX:PCA) ran ahead $3.73 or 12.4 per cent to $33.73.
The telecom sector was up 4.35 per cent after two days of declines in the wake of the announcement by BCE Inc. that the takeover of the telecom giant by a group led by the Ontario Teachers' Pension Plan is in serious jeopardy. BCE declined 28 cents to $24.95 - down sharply from Tuesday's close of $38.35 - while Telus Corp. (TSX:T) gained $2.53 to $39.22.
The base metals sector rose 0.8 per cent, capping a week of strong gains. Sherritt International bounded 57 cents or 20 per cent to $3.44.
Cameco Corp. (TSX:CCO) gained 50 cents to $22.15 after it said it is suspending production of uranium hexafluoride at its complex in Port Hope, Ont., as a result of "unreliable and expensive" deliveries of hydrofluoric acid.
On the TSX, advances beat declines 857 to 417 with 181 unchanged.
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Wednesday, November 26, 2008
Roger Biduk - Metals & Energy Bolster Bay Street
Roger Biduk writes:
The Toronto stock market surged 200 points Wednesday thanks to substantial runups in energy and base metals stocks, but gains would have been much higher if not for a big drop in BCE Inc. (TSX:BCE) shares on word its buyout is in serious trouble.
Toronto's S&P/TSX composite index gained 200.66 points to 8,643.52.
The TSX Venture Exchange moved up 11.43 points to 731.39. The Canadian dollar declined 0.34 cent at 81.29 cents US.
BCE shares plunged $13.10 or 34 per cent to $25.25 on news that the Montreal-based company couldn't meet certain solvency tests in its agreement to be bought by an investor group led by the Ontario Teachers' Pension Plan.
The telecom sector gave back more than 10 per cent with Telus Corp. (TSX:T) down 76 cents to $38.09 and Rogers Communications (TSX:RCI.B) fell 86 cents to $34.34.
On the TSX, the energy sector was ahead 7.66 per cent as the January crude oil contract gained $3.67 to US$54.44 per barrel on the New York Mercantile Exchange. A large interest rate cut in China and news of a possible Russian output cut countered a new government inventory report showing far more crude and gasoline in storage in the U.S. than was expected.
EnCana Corp. (TSX:ECA) improved $4.35 to $56.33 while Canadian Natural Resources (TSX:CNQ) ran ahead $5.25 to $49.
The base metals sector surged 16 per cent as Teck Cominco (TSX:TCK.B) advanced $1.08 or 25.7 per cent to $5.27 and HudBay Minerals (TSX:HBM) ran ahead 45 cents or 13.8 per cent to $3.70.
Strong gains in the tech sector also boosted the TSX as Research In Motion Ltd. (TSX:RIM) moved up $4.23 to $55.
Financials gained one per cent after National Bank of Canada (TSX:NA) said it expects to take fourth-quarter charges of $237 million. Shares in the country's sixth-largest bank declined $1.40 to $39.04
Bank of Montreal (TSX:BMO) deteriorated 66 cents to $34.29, giving up most of Tuesday's modest rise in the wake of fourth-quarter results showing net income up 24 per cent from a year ago but TD Bank (TSX:TD) rose 84 cents to $41.73.
Manulife Financial Corp. (TSX:MFC) shares gained $1.18 to $20.84 after it announced it has settled a lawsuit against French bank Societe Generale over losses from Portus Alternative Asset Management Inc., a failed Canadian hedge fund company.
Garda World Security Corp. (TSX:GW) gained 50 cents or 66.67 per cent to $1.25 on the TSX - down from $19 last spring - after it said its armoured-car and security-guard services are "experiencing sustained performance despite the economic slowdown."
On the TSX, advances led declines 712 to 544 with 208 unchanged.
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The Toronto stock market surged 200 points Wednesday thanks to substantial runups in energy and base metals stocks, but gains would have been much higher if not for a big drop in BCE Inc. (TSX:BCE) shares on word its buyout is in serious trouble.
Toronto's S&P/TSX composite index gained 200.66 points to 8,643.52.
The TSX Venture Exchange moved up 11.43 points to 731.39. The Canadian dollar declined 0.34 cent at 81.29 cents US.
BCE shares plunged $13.10 or 34 per cent to $25.25 on news that the Montreal-based company couldn't meet certain solvency tests in its agreement to be bought by an investor group led by the Ontario Teachers' Pension Plan.
The telecom sector gave back more than 10 per cent with Telus Corp. (TSX:T) down 76 cents to $38.09 and Rogers Communications (TSX:RCI.B) fell 86 cents to $34.34.
On the TSX, the energy sector was ahead 7.66 per cent as the January crude oil contract gained $3.67 to US$54.44 per barrel on the New York Mercantile Exchange. A large interest rate cut in China and news of a possible Russian output cut countered a new government inventory report showing far more crude and gasoline in storage in the U.S. than was expected.
EnCana Corp. (TSX:ECA) improved $4.35 to $56.33 while Canadian Natural Resources (TSX:CNQ) ran ahead $5.25 to $49.
The base metals sector surged 16 per cent as Teck Cominco (TSX:TCK.B) advanced $1.08 or 25.7 per cent to $5.27 and HudBay Minerals (TSX:HBM) ran ahead 45 cents or 13.8 per cent to $3.70.
Strong gains in the tech sector also boosted the TSX as Research In Motion Ltd. (TSX:RIM) moved up $4.23 to $55.
Financials gained one per cent after National Bank of Canada (TSX:NA) said it expects to take fourth-quarter charges of $237 million. Shares in the country's sixth-largest bank declined $1.40 to $39.04
Bank of Montreal (TSX:BMO) deteriorated 66 cents to $34.29, giving up most of Tuesday's modest rise in the wake of fourth-quarter results showing net income up 24 per cent from a year ago but TD Bank (TSX:TD) rose 84 cents to $41.73.
Manulife Financial Corp. (TSX:MFC) shares gained $1.18 to $20.84 after it announced it has settled a lawsuit against French bank Societe Generale over losses from Portus Alternative Asset Management Inc., a failed Canadian hedge fund company.
Garda World Security Corp. (TSX:GW) gained 50 cents or 66.67 per cent to $1.25 on the TSX - down from $19 last spring - after it said its armoured-car and security-guard services are "experiencing sustained performance despite the economic slowdown."
On the TSX, advances led declines 712 to 544 with 208 unchanged.
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Tuesday, November 25, 2008
Roger Biduk - Flat Day on Bay Street
Roger Biduk writes:
A mixture of both positive and negative economic news left investors cautious on Tuesday as they weighed the latest U.S. government plan to aid consumer lending companies.
Toronto's S&P/TSX composite index rose 1.99 points to 8,442.86 as oil prices declined. The TSX Venture Exchange fell 2.83 to 719.96.
The energy sector was behind 1.2 per cent as the near-month crude oil contract slipped $3.73 to close at US$50.77 per barrel on the New York Mercantile Exchange.
The Canadian dollar rose 0.63 cents to 81.63 cents US after surging 2.7 cents Monday.
TSX financial stocks rose 0.48 per cent after Bank of Montreal (TSX:BMO) reported fourth-quarter results with no credit-market booby-traps and net income of $560 million, up 24 per cent from a year ago. BMO shares gained 83 cents to $34.95.
The gold sector was down 0.7 per cent, as the bullion contract fell $1 to US$818.50 an ounce, a decline that was eased somewhat by the sliding value of the greenback.
The information technology sector was the greatest decliner, falling 2.9 per cent, as Research In Motion (TSX:RIM) lost $4.50 to $50.77.
Shares in Denison Mines Corp. (TSX:DML), a mid-sized uranium producer and explorer, fell 24 per cent to $1.02 after the company and its partners said they are postponing development of a uranium project in Saskatchewan because of weak economic conditions.
In Canadian corporate news, the children of Canwest Global Communications Corp. founder Izzy Asper have expanded their holdings of the media company's subordinate voting shares (TSX:CGS). Leonard and David Asper said recent purchases of 4.5 million of the beaten-down subordinated shares were "for investment purposes." Canwest shares were down eight cents to 61 cents.
Shares of Protox Therapeutics Inc. (TSX:PRX), a Vancouver-based drug developer, rose more than 33 per cent after the company said it has received positive data from its Phase 2 study of a key drug for benign prostatic hyperplasia, a painful urological ailment. The company was up 11 cents to 44 cents.
BHP Billiton Ltd. abandoned its hostile takeover bid for rival Rio Tinto Ltd., blaming the global economic downturn and plunging commodity prices. Rio's holdings include the former Alcan, which is now a wholly owned subsidiary of the Anglo-Australian mining company.
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A mixture of both positive and negative economic news left investors cautious on Tuesday as they weighed the latest U.S. government plan to aid consumer lending companies.
Toronto's S&P/TSX composite index rose 1.99 points to 8,442.86 as oil prices declined. The TSX Venture Exchange fell 2.83 to 719.96.
The energy sector was behind 1.2 per cent as the near-month crude oil contract slipped $3.73 to close at US$50.77 per barrel on the New York Mercantile Exchange.
The Canadian dollar rose 0.63 cents to 81.63 cents US after surging 2.7 cents Monday.
TSX financial stocks rose 0.48 per cent after Bank of Montreal (TSX:BMO) reported fourth-quarter results with no credit-market booby-traps and net income of $560 million, up 24 per cent from a year ago. BMO shares gained 83 cents to $34.95.
The gold sector was down 0.7 per cent, as the bullion contract fell $1 to US$818.50 an ounce, a decline that was eased somewhat by the sliding value of the greenback.
The information technology sector was the greatest decliner, falling 2.9 per cent, as Research In Motion (TSX:RIM) lost $4.50 to $50.77.
Shares in Denison Mines Corp. (TSX:DML), a mid-sized uranium producer and explorer, fell 24 per cent to $1.02 after the company and its partners said they are postponing development of a uranium project in Saskatchewan because of weak economic conditions.
In Canadian corporate news, the children of Canwest Global Communications Corp. founder Izzy Asper have expanded their holdings of the media company's subordinate voting shares (TSX:CGS). Leonard and David Asper said recent purchases of 4.5 million of the beaten-down subordinated shares were "for investment purposes." Canwest shares were down eight cents to 61 cents.
Shares of Protox Therapeutics Inc. (TSX:PRX), a Vancouver-based drug developer, rose more than 33 per cent after the company said it has received positive data from its Phase 2 study of a key drug for benign prostatic hyperplasia, a painful urological ailment. The company was up 11 cents to 44 cents.
BHP Billiton Ltd. abandoned its hostile takeover bid for rival Rio Tinto Ltd., blaming the global economic downturn and plunging commodity prices. Rio's holdings include the former Alcan, which is now a wholly owned subsidiary of the Anglo-Australian mining company.
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Monday, November 24, 2008
Roger Biduk - Commodites & Confidence Lead Bay Street Higher
Roger Biduk writes:
North American stock markets higher Monday as commodities strengthened and investor confidence was bolstered by the U.S. government's bailout plan for Citigroup.
Toronto's S&P/TSX composite index gained 285.48 points to 8,440.87, and the Canadian dollar surged 2.70 cents to 81 cents US on a weaker greenback.
The TSX Venture Exchange rose 18.62 to 722.79.
Leading the TSX gain were energy stocks, ahead 7.6 per cent, on a boost from a higher price for oil. The January crude contract was up $4.57 to close at US$54.50 a barrel on the Nymex.
BCE Inc. shares (TSX:BCE) rose nearly 10 per cent from the Citigroup arrangement on optimism that the $52-billion purchase of Canada's largest telecom company will go ahead. The bank is a lead lender in the transaction, and BCE stock gained $3.39 to $37.94.
On the TSX, financials stocks gained 4.7 per cent after Royal Bank (TSX:RY) said it will report a profit of $1.1 billion. That's down 15 per cent from a year ago on charges related to the shakeup in financial markets but all of the Canadian bank stocks have already declined in the past week in anticipation of lowered profits. Shares in Canada's largest bank, which reports Dec. 5, slipped at the open, then shifted higher, up $2.52 at $39.
Last week, TD Bank (TSX:TD) and Scotiabank (TSX:BNS) previewed their expected losses for the fourth quarter, though both won't release their full results until next week. TD announced after the markets closed Monday that it will raise $1.2 billion in an issue of common shares. The bank said it will issue 30.4 million shares at a price of $39.50 per share, a discount to Monday's closing price of $42.90 and but above a 52-week low of $38.33 established earlier in the day.
Roger Biduk writes:
Mining stocks were up 6.8 per cent. Hudbay Minerals (TSX:HBM) moved up five per cent, rising 15 cents to $3.31.
The gold index gained 1.5 per cent as December bullion closed ahead $27.70 to US$819.50 an ounce.
The Conference Board of Canada reported that its consumer confidence index fell again this month, losing 2.9 points to 71. The think-tank notes that consumer sentiment as at "depths previously reached only in 1982 and 1990, which were both periods of recession."
Investors cheered the prospect of fiscal stimulus for the overall economy. In Canada, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have indicated they plan deficit spending.
Gran Tierra Energy (TSX:GTE) shares fell eight per cent after the company suspended production in two oilfields in southern Colombia due to a general strike in the region. Gran Tierra stock crumbled throughout the day before returning to where it opened, closing even at $2.94.
NovaGold Resources Inc. (TSX:NG) shares plummeted 67 per cent after the company said it's suspending operations at Rock Creek because it has been unable to raise new money and faces being unable to meet its financial obligations next month. Stock slid $1.48 to 72 cents.
Health care company Johnson & Johnson plans to acquire Omrix Biopharmaceuticals Inc. for US$438 million - or $25 per share - in a plan to expand its surgical product unit.
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North American stock markets higher Monday as commodities strengthened and investor confidence was bolstered by the U.S. government's bailout plan for Citigroup.
Toronto's S&P/TSX composite index gained 285.48 points to 8,440.87, and the Canadian dollar surged 2.70 cents to 81 cents US on a weaker greenback.
The TSX Venture Exchange rose 18.62 to 722.79.
Leading the TSX gain were energy stocks, ahead 7.6 per cent, on a boost from a higher price for oil. The January crude contract was up $4.57 to close at US$54.50 a barrel on the Nymex.
BCE Inc. shares (TSX:BCE) rose nearly 10 per cent from the Citigroup arrangement on optimism that the $52-billion purchase of Canada's largest telecom company will go ahead. The bank is a lead lender in the transaction, and BCE stock gained $3.39 to $37.94.
On the TSX, financials stocks gained 4.7 per cent after Royal Bank (TSX:RY) said it will report a profit of $1.1 billion. That's down 15 per cent from a year ago on charges related to the shakeup in financial markets but all of the Canadian bank stocks have already declined in the past week in anticipation of lowered profits. Shares in Canada's largest bank, which reports Dec. 5, slipped at the open, then shifted higher, up $2.52 at $39.
Last week, TD Bank (TSX:TD) and Scotiabank (TSX:BNS) previewed their expected losses for the fourth quarter, though both won't release their full results until next week. TD announced after the markets closed Monday that it will raise $1.2 billion in an issue of common shares. The bank said it will issue 30.4 million shares at a price of $39.50 per share, a discount to Monday's closing price of $42.90 and but above a 52-week low of $38.33 established earlier in the day.
Roger Biduk writes:
Mining stocks were up 6.8 per cent. Hudbay Minerals (TSX:HBM) moved up five per cent, rising 15 cents to $3.31.
The gold index gained 1.5 per cent as December bullion closed ahead $27.70 to US$819.50 an ounce.
The Conference Board of Canada reported that its consumer confidence index fell again this month, losing 2.9 points to 71. The think-tank notes that consumer sentiment as at "depths previously reached only in 1982 and 1990, which were both periods of recession."
Investors cheered the prospect of fiscal stimulus for the overall economy. In Canada, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have indicated they plan deficit spending.
Gran Tierra Energy (TSX:GTE) shares fell eight per cent after the company suspended production in two oilfields in southern Colombia due to a general strike in the region. Gran Tierra stock crumbled throughout the day before returning to where it opened, closing even at $2.94.
NovaGold Resources Inc. (TSX:NG) shares plummeted 67 per cent after the company said it's suspending operations at Rock Creek because it has been unable to raise new money and faces being unable to meet its financial obligations next month. Stock slid $1.48 to 72 cents.
Health care company Johnson & Johnson plans to acquire Omrix Biopharmaceuticals Inc. for US$438 million - or $25 per share - in a plan to expand its surgical product unit.
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Saturday, November 22, 2008
Roger Biduk - Gold & Materials Lead as Bay Street Soars
Roger Biduk writes:
Stock markets in Canada and the United States found their way towards triple-digit gains after enduring a session that spent most of the day searching for direction.
Both sides of the border saw the major indexes jump more than five per cent.
In Toronto the rising price of gold led a heavily traded session that also included enthusiastic gains in mining and materials stocks. The S&P/TSX composite index rose 430.63 points to 8,155.39. The TSX Venture Exchange rose 12.22 points to 704.17.
The Canadian dollar closed at 78.30 cents US, up 0.99 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
On the TSX, bank and insurance stocks were up 0.3 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
The gold index was the major gainer, up 27.2 per cent, as Barrick Gold Corp. (TSX:ABX) was ahead $8.70 to $35.50.
Roger Biduk writes:
The mining index rose 18.1 per cent. HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 40 per cent to $3.16 and Lundin rose nearly four per cent to $1.05.
Energy stocks were also higher, up 10 per cent as the January crude contract rose 51 cents to US$49.93 per barrel. Oil prices were still 13 per cent lower compared to last week's closing price.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares increased 20 cents to $16.74.
Catalyst Paper Corp. (TSX:CTL) fell five cents to 25 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead $3.10 to $57.09 on the day the company debuted the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
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Stock markets in Canada and the United States found their way towards triple-digit gains after enduring a session that spent most of the day searching for direction.
Both sides of the border saw the major indexes jump more than five per cent.
In Toronto the rising price of gold led a heavily traded session that also included enthusiastic gains in mining and materials stocks. The S&P/TSX composite index rose 430.63 points to 8,155.39. The TSX Venture Exchange rose 12.22 points to 704.17.
The Canadian dollar closed at 78.30 cents US, up 0.99 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
On the TSX, bank and insurance stocks were up 0.3 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
The gold index was the major gainer, up 27.2 per cent, as Barrick Gold Corp. (TSX:ABX) was ahead $8.70 to $35.50.
Roger Biduk writes:
The mining index rose 18.1 per cent. HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 40 per cent to $3.16 and Lundin rose nearly four per cent to $1.05.
Energy stocks were also higher, up 10 per cent as the January crude contract rose 51 cents to US$49.93 per barrel. Oil prices were still 13 per cent lower compared to last week's closing price.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares increased 20 cents to $16.74.
Catalyst Paper Corp. (TSX:CTL) fell five cents to 25 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead $3.10 to $57.09 on the day the company debuted the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
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Friday, November 21, 2008
Roger Biduk - Brutal Day on Bay Street
Roger Biduk writes:
Stocks faced another brutal day across North America, but it was the Toronto Stock Exchange which was hardest hit - plunging more than 750 points Thursday to its lowest level in five years.
Toronto's S&P/TSX composite index was down nine per cent on bad news across key sectors like banking and energy. The main index lost 765.80 points to end the session at 7,724.76.
Canada's most-watched stock index hasn't fallen this low since late October 2003, and it's a drop of 47 per cent from the TSX peak just five months ago at 15,073.
The TSX Venture Exchange tumbled 38.14 points to 691.95.
The Canadian dollar was down 2.52 cents to 77.31 cents US, after dropping to an intraday low of 77.22.
The TSX was hit especially hard on troubling news from many of its major sectors.
Toronto energy stocks fell 14.5 per cent as crude oil dipped under the US$50-a-barrel mark for the first time since January 2007. The price was down 7.5 per cent, or $4, to close at US$49.62 a barrel on the New York Mercantile Exchange.
Financial stocks were down 12.2 per cent after TD Bank (TSX:TD) disclosed $350 million in quarterly credit trading losses. Its shares lost $6.36 to $43.57, and all the other big Canadian banks were also sharply lower.
Royal Bank (TSX:RY) lost 13 per cent of its value to $35.65 and CIBC (TSX:CM) fell 12 per cent to $42.28.
Metal stocks slid 12.1 per cent as Teck Cominco Ltd. (TSX:TCK.B) was down 21 per cent to $4.10 after it suspended dividends on its common shares to help cut debt taken on for the US$14-billion takeover of the Fording Canadian Coal Trust.
The gold sector was the lone gainer, up 2.6 per cent, as the December bullion contract rose $12.70 to close at $748.70 an ounce.
Kinross Gold Corp. (TSX:K) rose three cents to $13.97 on word it is paying US$250 million to buy the Lobo-Marte gold site in Chile from Teck Cominco and Anglo American PLC.
Statistics Canada says wholesale sales increased 1.5 per cent to $46.3 billion in September, boosted largely by a partial recovery in the automotive sector.
Other big movers included Nortel Networks (TSX:NT), down 16 per cent to hit a new low of 52 cents.
March Networks (TSX:MN) says a bank in Latin America signed a $6 million deal to provide networked video recording systems and investigation software for use at more than 1,900 bank branches and automated teller machines. Shares were down three cents to $1.84.
www.rogerbiduk.ca
www.rogerbiduk.blogspot.com
Stocks faced another brutal day across North America, but it was the Toronto Stock Exchange which was hardest hit - plunging more than 750 points Thursday to its lowest level in five years.
Toronto's S&P/TSX composite index was down nine per cent on bad news across key sectors like banking and energy. The main index lost 765.80 points to end the session at 7,724.76.
Canada's most-watched stock index hasn't fallen this low since late October 2003, and it's a drop of 47 per cent from the TSX peak just five months ago at 15,073.
The TSX Venture Exchange tumbled 38.14 points to 691.95.
The Canadian dollar was down 2.52 cents to 77.31 cents US, after dropping to an intraday low of 77.22.
The TSX was hit especially hard on troubling news from many of its major sectors.
Toronto energy stocks fell 14.5 per cent as crude oil dipped under the US$50-a-barrel mark for the first time since January 2007. The price was down 7.5 per cent, or $4, to close at US$49.62 a barrel on the New York Mercantile Exchange.
Financial stocks were down 12.2 per cent after TD Bank (TSX:TD) disclosed $350 million in quarterly credit trading losses. Its shares lost $6.36 to $43.57, and all the other big Canadian banks were also sharply lower.
Royal Bank (TSX:RY) lost 13 per cent of its value to $35.65 and CIBC (TSX:CM) fell 12 per cent to $42.28.
Metal stocks slid 12.1 per cent as Teck Cominco Ltd. (TSX:TCK.B) was down 21 per cent to $4.10 after it suspended dividends on its common shares to help cut debt taken on for the US$14-billion takeover of the Fording Canadian Coal Trust.
The gold sector was the lone gainer, up 2.6 per cent, as the December bullion contract rose $12.70 to close at $748.70 an ounce.
Kinross Gold Corp. (TSX:K) rose three cents to $13.97 on word it is paying US$250 million to buy the Lobo-Marte gold site in Chile from Teck Cominco and Anglo American PLC.
Statistics Canada says wholesale sales increased 1.5 per cent to $46.3 billion in September, boosted largely by a partial recovery in the automotive sector.
Other big movers included Nortel Networks (TSX:NT), down 16 per cent to hit a new low of 52 cents.
March Networks (TSX:MN) says a bank in Latin America signed a $6 million deal to provide networked video recording systems and investigation software for use at more than 1,900 bank branches and automated teller machines. Shares were down three cents to $1.84.
www.rogerbiduk.ca
www.rogerbiduk.blogspot.com
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